Knowing your motivations and values is important. It’s also important to know how these align with your tolerance for risk. Some philanthropists are willing to support promising start-ups, while others prefer to donate to organizations with longstanding track records. Some philanthropists are willing to shoot for the moon to achieve ambitious policy goals, while others feel more comfortable supporting the delivery of services that offer predictable benefits.
Example risk profile statements:
I want to see major changes, but, given my public profile, I’m concerned about reputational risk. So while I’m willing to fund innovative approaches, I don’t want to be the first funder. To mitigate potential reputation concerns, I may also use an intermediary vehicle or make my donations anonymously.
I am very comfortable with risk. I want to test solutions that others may be afraid to try. I am comfortable supporting new programs, start-up organizations, and ambitious but well thought-out strategies whose results m
We recommend that you reflect on your attitudes toward risk using the below activity.